Council 7-28-2026 [63:23-66:36]

Slide 7, the financial outlook. We talked about how the property tax growth is expected to slow because of these legislative changes. We expect to see slow net assessed value growth, which we'll see on the assumptions. Local income tax revenue, which we've talked about at Nazim, we do have some things up in the air right now about when the actual distributions from that lit are going to be effective. Something came out from the DOGF last week that makes us believe that maybe those actual distributions for the new lit might not happen until 2030 instead of 2029. So we'll keep you apprised of that as we get more information on that. Again, we talked about the capital planning and the few funds that require some review to make sure that they stay financially stable, which is what we get to here in the key financial challenges. These are the four funds that we've identified as, again, fine for now, but we want to make sure that we're adjusting them in future years to make sure that they're sustainable. So the health fund, when we get to the cash flow, we'll show that a lot of levy has been moved from the health fund in order to utilize some excess cash reserves in those funds, but as early as 2028, a levy allocation will need to be moved back to that fund to make sure that it is sustainable. It's a similar, excuse me, similar story for reassessment. Again, operating on cash reserves to utilize excess reserves in 2028. We would need to move some levy to that fund. State 1911, we are seeing those revenues decline all over the state. So it has been operating on cash balances since 2025. We'll talk a little bit about how that funds heading once we get to that cash flow here in just a few minutes. And the emergency management fund, similarly, this one can last a little bit longer on cash reserves, but we want to look at levy allocation starting in 2031. County Health Funding just wanted to make a quick point on the health first Indiana. So as you, I'm sure you're all aware in 2025 that funding was cut at the state level. If the county is reliant upon those health first Indiana funds for operating costs, we may need to look at moving those costs either to the health fund and then reallocating more levy, or to the general fund, or from that has enough revenues to. That's a big cut. Yeah, so the statewide cut was huge. And if you see the right box there is how much it was cut from 2025 to 2026 and what we're estimating for 2027 is 266,000 down from almost a million dollars in 2025. So if counties became reliant on that, you know, for operating costs, that's a struggle, because then once you have those recurring operating costs, then you have to figure out where to pay for those once that funding is not there. So it will be a reassessed my understanding in the next budget season, which I believe is 2027 for 2028.